Daily Sun, 24 August 2012
The hotel and hospitality sector has been growing steadily in Bangladesh thanks to economic growth, rise in export earnings and high turnout of tourists as well as corporate clients, sector people said.
The prospect of hotel industry is bright as the economy of the country is growing at least by six per cent over the years.
Industry insiders said local tourist are increasingly visiting Cox’s Bazaar, Chittagong, Sylhet and Kuakata now than 10 years back as a new middle-class has emerged within the country who like to travel twice a year in the lucrative places of the country.
The number of in-bound tourists is gradually rising as a political government is in the power at present, they opined.
Demanding the government to reduce VAT, which is now 15 per cent, the entrepreneurs suggested that revenue collection will go up by twice or thrice if the rate is lowered to single digit.
They also said the government should take an aggressive drive to brand the country as this will give an exposure of the country abroad that in turn would woo in-bound tourists.
The National Board of Revenue (NBR) statistics shows It also shows that hotel and restaurant business has been maintaining a sustainable growth.
The hotel industry in Bangladesh contributed Tk 938.9 million and restaurant business Tk 547.7 million to the national exchequer in 2009-2010 fiscal year.
The hotel industry posted 2.65 per cent negative growth in 2008-09 fiscal year, but the restaurant business posted 7.74 per cent growth in the same period over the year.
The hotel industry contributed Tk 746.4 million to the national exchequer in 2007-08 and Tk 772.9 million in 2008-09. The restaurant sector contributed Tk 441.7 million in 2007-08 and Tk 519.1 million in 2008-09.
NBR sources said, business turnover of hotels and restaurants will be around Tk 10 billion as the rate of value added tax (VAT) is 15 per cent. But according to unofficial sources, the business turnover of hotels and restaurants in Bangladesh will be around Tk 30-40 billion as the incidents of tax evasion is higher in Bangladesh.
While talking to the media, a top official of Ruposhi Bangla hotel said the government is deprived of several millions of taka as revenues every year as most of the hotels and restaurants are evading tax. Tk 1486.6 million revenue earning from the sector is poor and the NBR should launch drive to enhance its revenue income from the area.
He said Dhaka Radisson Water Hotel and Pan Pacific Sonargaon Hotel have contributed to the national exchequer to the tune of Tk 700 million.
This also means that the rest of the hotels and restaurants have contributed some Tk 800 million to the national exchequer. He said some 100 small and medium sized hotels in Chottagong, Sylhet and Bogra are also doing sound business.
Meanwhile, tourist arrival in the country in 2010 calendar year marked 13.58 per cent rise compared to 2009. A total of 303,386 tourists came to the country in 2010 calendar year as against 267,107 in 2009, according to government statistics.
Foreign exchange earning from the tourism and other travels was Tk 5562.94 million in 2010 as against Tk 5,762.24 million in the previous year, according to Bangladesh Bank.
BB sources said the country earned Tk 52.65 billion in 2008 as against Tk 61.25 billion in 2007 from the tourism sector.
The high turn-outs of tourists during 2007, 2008, 2009 and 2010 also indicate that Bangladesh has immense prospect to become an attractive tourist destination in the region due to its political stability and a sound law and order situation, said Mahfuzur Rahman, manager of Ruposhi Bangla Hotel.
Rahman expressed the view that that Bangladesh can reach the upper ladder of the economic development by promoting tourism, particularly the eco-tourism that has tremendous potentials.
Rahman said Bangladesh should launch a massive campaign to improve its image in a bid to attracting tourists as the country has rich culture, historical monuments and natural beauty.
He mentioned that Bangladesh should cash in on potentials of eco-tourism as a good number of countries around the world have prospered by promoting tourism.
“You need to improvise your marketing to sell your products in the world. Bangladesh has natural resources that should be explored properly,” said Rahman.
The government can sponsor holding of festivals, exhibitions, seminars and symposiums to promote travel and tourism, he mentioned.
In 2005, the countries like Malaysia earned $ 10,389 million, Indonesia $ 5097 million, Lebanon $ 5869 million, Morocco $ 3426 million, United Arab Emirates $ 2200 million and Jordan as those countries became attractive destinations for tourists.
Tax holiday facilities, extensive training, increased government budget and a long-term policy will give a boost to the tourism and hospitality industry that holds tremendous potentials in Bangladesh, said the sector insiders.
Shahid Hamid, executive director of Dhaka Regency Hotel, said the prospect of hotel industry is bright as the economy of the country is growing at least by six per cent over the years.
He said local tourist are increasingly visiting Cox’ Bazaar, Chittagong, Sylhet and Kuakata now than 10 years back.
He said a new middle class has emerged within the country who like to travel twice a year the lucrative places of the country.
He said also some new airlines –Air Arabia, GMG Airlines, Bangkok Airways and Mihin Lanka Airlines, a public-private airline company of Sri Lanka—have launched new routes to and from Dhaka.
He expressed the hope that the number of in-bound tourists will gradually rise in 2012 and 2013 as a political government is now in the power.
Now business tycoons are constructing a good number of posh hotels in the capital city, Cox’ Bazaar, Chittagong and Sylhet, he said.
He sees a boom in hotel business in the coming days as business have every prospect to grow despite confrontation between the two major political parties.
He said Bangkok which is now treated as a tourist hub had not enough hotels 15-20 years back.
He said Bangladesh will witness the same scenario within 5-10 years as a good number of hotels and motels are being constructed.
He demanded cut in VAT rate which is now 15 per cent and suggested that revenue collection will go up by twice or thrice if the rate is lowered to single digit.
Citing an example of Bangladesh Telephone and Telegraph Board, Shahid Hamid said overseas calls of the board has increased manifold as when call rate was cut drastically.
He said the government should take an aggressive drive to brand the country as this will give an exposure of the country abroad that in turn would woo in-bound tourists.
Andre A Gomez, former general manager of Radisson Water Garden Dhaka, said potentials of the hotel and hospitality industry of Bangladesh sounded good after the parliament election held in December 29, 2008.
Business continues to grow not only in Dhaka, but also in Chittagong, the commercial capital of the country, Cox’s Bazar and even now in Sylhet, he said.
He said the number of five star hotels in Dhaka was not enough. Gomez, an Australian citizen, after serving Radisson Water Garden Dhaka, left Dhaka in early 2011.
Bangladesh Economy 
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